According to a new market research report published by Credence Research “Over-the-Top (OTT) Market
(Content Type – Voice, Text & Image and Video) - Growth, Share,
Opportunities, Competitive Analysis and Forecast 2016 - 2023”, the
global over-the-top (OTT) market was valued at US$ 28.75 Bn in 2015 and
is estimated to expand with a CAGR of 14.4% from 2016 to 2023.

Over-the-top (OTT) refers to delivery of audio, video or any other
media content over the internet. Unlike traditional distribution of
television service, OTT eliminates the need for additional distribution
or control of the content. The most significant USP of OTT content lies
in the freedom of consumers to access any content based on their
convenience. Over the period of time, OTT content has exponentially
transformed various traditional services such as telephonic calls
(through Skype), messaging (WhatsApp, Facebook Messenger) and video
(Netflix, YouTube etc.).

Rising penetration of internet services is the prominent factor
fueling the OTT market growth. Number of internet users across the globe
have soared from mere 16% (of the global population) in 2005 to more
than 40% in 2015. This has greatly transformed the audio and video
content services being delivered over the internet. People are now
increasingly shifting towards OTT content (as supplement) to the
traditional television services. This has led to high demand for OTT
content especially audio and video since the past few years. With the
further rising number of internet users coupled with smart mobile
devices, the OTT market is estimated to register robust growth during
the forecast period. Nevertheless, poor network infrastructure,
specifically in the developing nations, is major concern for the market
growth.

The global OTT market is product driven and hence the market
players compete on the basis of providing various services under single
platform. Although the concept of delivering media content over internet
is not new, the overall adoption is yet to become mature. Thus, OTT
players are keen on discovering larger consumer base so as to sustain in
the competitive market. Another major area of competition is providing
HD content to the consumers.

OTT market is majorly challenged by the traditional network and pay
TV operators. OTT content is accessed over the internet and hence the
market growth substantially affects the mainstream revenue of network
and pay TV operators. Subsequently, the market comprises various
regulations over voice and also video OTT content delivery. Various
national government have enforced OTT content providers to obtain
license for operating in the particular country. This may slow down the
market growth in the coming years.

Key Trends:

Focus on delivering HD content (voice/audio/video) to the consumers

Rising penetration of internet services worldwide

Cloud-based delivery of OTT content

Partnership and acquisition with other players in the OTT content ecosystem

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